In a significant move, IBM, the world’s largest technology services company, has announced the complete closure of its research and development (R&D) operation in China, affecting more than 1,000 jobs. This decision comes as the company grapples with declining demand for its hardware and faces challenges in growth markets like China.
According to a spokesperson for IBM, the changes will not impact the company’s ability to support clients across the Greater China region. However, the closure of the R&D operation marks a significant shift in IBM’s strategy in the region.
The move is seen as a response to the company’s struggles with falling demand for its hardware, as well as challenges in navigating the complex and highly competitive Chinese market. Despite this, IBM remains committed to supporting its clients in the region, albeit with a reduced presence.
The closure of the R&D operation is expected to have a significant impact on the affected employees, with many facing uncertainty about their future. However, IBM has not provided details on the support or resources that will be available to those impacted by the closure.
